Yesterday I talked about one likely scenario for Hang Seng as shown below where wave 5 can finish its journey at 23,000 within 2 weeks. After which we have to watch out for the major wave (IV) consolidation.
The above scenario can happen if Dow is unable to break its immediate upper resistance in the next few sessions and starts to turn lower as shown below to form major wave (II).
However if Dow is able to punch through its upper resistance line in tandem with Nasdaq and S&P as mentioned in my post on September 17, it doesn't matter whether it is case A or case B as shown below, Hang Seng will be able to move much higher for a longer time frame.
The first indication from Hang Seng that its current run-up can last much longer is when it can move higher than 23,000. Refer to the chart as shown below, since wave 3 is shorter than wave 1, wave 5 has to be equaled to or shorter than wave 3.
Once the wave 5 shown above is longer than wave 3, than the count is no longer 3-4-5, the count has to be sub-wave i-ii-iii as shown below. Very bullish indeed.
The point here is as long as Dow is trending upwards, the rest of the world bourses including Hang Seng should be trending upwards in tandem with Dow. We have no need to worry about this scenario, we have to be really careful when Hang Seng were to end at 23,000.
No comments:
Post a Comment